EUR/USD struggles for direction around 1.1300 on Tuesday.German Unemployment Rate ticked lower to 5.2% in December.US ISM Manufacturing next of relevance in the calendar.The single currency looks to leave behind the pessimism seen at the beginning of the year and now pushes EUR/USD back above the 1.1300 mark, recording modest gains so far on Tuesday.EUR/USD looks supported around 1.1280
Following Monday’s moderate pullback, EUR/USD attempts to regain some upside traction in response to the lack of direction in the US dollar and the steady performance of yields on both sides of the Atlantic.
EUR/USD met quite decent contention in the 1.1280 region so far this week. As the normal activity resumes in the global markets following the festive period, the pair is seen refocusing on the main driver of the pair’s price action, namely the ECB-Fed policy divergence. In the meantime, the unabated progress of the coronavirus pandemic as well as the fast-spreading omicron variant remain as the exclusive factors to look at when it comes to the economic growth prospects and investors’ morale
So far, spot is gaining 0.08% at 1.1303 and faces the next up barrier at 1.1386 (monthly high November 30) followed by 1.1464 (weekly high Nov.15) and finally 1.1520 (200-week SMA). On the other hand, a break below 1.1273 (weekly low Dec.29) would target 1.1221 (weekly low Dec.15) en route to 1.1186 (2021 low Nov.24).